Starlink black market boom

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Starlink’s reach extends to countries where Elon Musk’s satellite-enabled service has no agreement to operate, including South Africa and territories ruled by repressive regimes.

In the real world, its reach extends to countries where Elon Musk’s satellite-enabled service has no agreement to operate, including territories ruled by repressive regimes.

Many people are prepared to defy competing warring factions, including Houthi rebels, to secure terminals for business and personal communications, and evade the slow, often censored internet service that’s currently available.Or take Sudan, where a year-long civil war has led to accusations of genocide, crimes against humanity and millions of people fleeing their homes.

Musk, until recently the world’s richest person, has said there will be a cap to how much money SpaceX’s launch services business will make, while Starlink could eventually reach revenue of $30 billion a year. All it did was lead to higher prices on the black market, according to a trader who imports the gear and who didn’t want to speak publicly for fear of retribution. Prior to the government intervention, customers were able to buy the company’s equipment and have it shipped via the local postal service, the trader said.

The US Department of Defense later struck a deal with Starlink to supply Ukraine with equipment, the terms of which were not made public. It’s the uncertainty about where the satellite dishes are landing that has security officials around the world concerned. In North Africa, Starlink’s use in Sudan shows how terminals arrive in a country subject to international sanctions.Both the Sudanese Armed Forces and Rapid Support Forces have blamed each other for cutting the service while the CEO of Zain Sudan, a mobile operator, said his company’s engineers had been prevented from reaching parts of the country to reconnect the network due to insecurity and a lack of fuel.

In South Africa, where Musk was born, the government hasn’t yet approved Starlink’s application to operate. But that hasn’t prevented a flourishing trade in terminals there.Facebook groups feature providers that offer to buy and activate the kits in Mozambique, where it is licensed, and then deliver them over the border to South African customers.

There has been significant demand, with the first shipment to Nigeria selling out in a few hours, according to chief commercial officer Hisham El Gabry. While “that device could eventually end up with bad actors,” Starlink can monitor where these devices are connecting from. President Joe Biden’s administration could tighten the export controls that apply to Starlink to keep them out of the hands of American adversaries, according to a former US government official.

 

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